The collision of global markets and social mood

Wednesday, July 11, 2012

Which Way Wednesday

Yesterday was a great day for price discovery.  One area (1361-1363) got hit and the other (1343) got exceeded.  The pre-market SPXU trade was a big winner.  I hedged it at 4%, buying SPY 134 calls at 3:34pm and sold them at 4:11pm EST.

The way the S&P is structured now, it is possible that yesterday's 1361.54 high can be re-tested.  I will be looking for spots to get long again against the SPXU position which I will continue to hold.  Below 1334.40 could mean considerable new lows (possibly 1300).  I find Wednesdays to be either one-way or whacky. 

Today all eyes and ears will be on the Fed minutes at 2pm EST.  I will be watching the S&P, the dollar, gold, and oil.

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